10 Things Every Crypto Investor Should Know

January 23, 2023
Community, Education

Make informed decisions when investing in crypto with our 10 tips to help potential crypto investors make their investments safely and with the highest chances for success.

Investing in crypto can be both incredibly lucrative and incredibly risky. Many investors have made fortunes after investing in Bitcoin, but others have also lost all their money due to scams and bad decisions. 

In order to make the most informed decisions possible, it is important to understand the risks associated with investing in cryptocurrencies and to have the right tips on hand. 

In this article, we will go through 10 tips and tricks to help potential crypto investors make their investments safely and with the best chances of success.

1. Understand the Risks

Investing in cryptocurrencies can be a double-edged sword - you could make a fortune overnight, or you could lose your shirt in a blip. Before you bet your house on Bitcoin, take a few moments to understand the risks associated with investing in cryptocurrencies.

Cryptocurrencies are highly volatile – it’s not an exception that cryptocurrency triple its value overnight or lose 90% of it.

They are not backed by any government or financial institution. Nobody will help you to recoup losses and it will be difficult to take legal action against dissident traders.

The whole market is rife with scams and hackers, so it is important to be well-informed and vigilant when dealing with digital assets. Take the time to properly research any potential crypto investments.

2. Do Your Research

This is probably the most important advice of all. Before taking any actions, please, do your research first. It means educate yourself. Make sure you understand the market and understand the asset you want to invest in.

It is important to be thorough in understanding the features and potential of a cryptocurrency before you decide to put your hard-earned money into it! Otherwise, you could end up being part of the crypto-currency walking dead and paying the ultimate price of not doing your research. 

So, before you jump into the world of cryptocurrencies, make sure you know what you’re getting yourself into!

3. Diversify Your Portfolio

If you’ve got cryptocurrency investment fever, you’ve heard the same advice over and over again: diversify your portfolio. But what does that really mean? Does it mean getting a portfolio filled with the hottest coins? Not exactly. 

It’s actually more akin to spreading your risk over a range of cryptocurrencies and ideally other assets, so that if one coin sinks, your other investments will cushion the blow. 

So don't gamble with your money! Instead of going all in with the latest doge scam, invest it in a wide range of cryptocurrencies, stocks, bonds and other assets to diversify your portfolio instead!

4. Use Secure Wallets 

If you don't want to lose your hard-earned Bitcoin in a digital heist, you better use secure crypto wallets!

A crypto wallet is like the digital equivalent of your wallet, except it only stores your digital money. With a crypto wallet you don’t have to worry about the bulkiness or weight of a physical wallet, just head on over to the digital world and you’ll find all your money in one place. 

Protecting your cryptocurrencies is like protecting your actual wallet - it's a must! With apps like Ledger and Trezor, they ensure your money stays. And while it's a bit of a chore, it's worth it in the long run. 

5. Keep Track of Market Trends

Cryptocurrencies are like never-ending rollercoaster of excitement and intrigue. If you don't keep on top of the market trends and news, you'll feel like you've felt from your cart! 

Whether you take the safe route and invest in bitcoin, or go crazy with latest doge coins, you've got to stay aware of what's going on in the cryptocurrency world. 

Besides that, you should also watch out what’s going on in the real world. Recent events such as Russian invasion to Ukraine or COVID-19 pandemics are showing us that the world is extremely interconnected and everything influences everything else.

6. Avoid FOMO

Ever felt like you have to buy this shit coin becasue you don’t want to stay poor while everybody else it already earning money on it? Congrats, you’ve been victim of FOMO.

FOMO is the feeling of missing out on potential opportunities or activities, usually due to the fear that everyone else is doing something better. In reality, FOMO and all kinds of WAGMI phrases often leads us to make decisions we later regret…

Focus on your own long term strategy, goals and objectives and think critically before putting your money into a currency that could potentially leave you without a return.

Take a few deep breaths, think through your decisions logically, and FOMO won't be able to control you.

7. Be Careful With Leverage

In the world of margin trading, there are many secret traps. One of the most common is called Leverage. It may look like your golden ticket to success, but it can slip through your fingers like sand.

Don't be fooled by the promise of profit. Take a step back and remember that leverage can make your profits go wild, but it can also cause your losses to quickly get out of control. When it comes to margin trading, knowledge is power. 

Make sure you understand the risks before you leverage a single coin.

8. Don't Over-Invest

It's important to heed the age-old advice when it comes to investing: "Don't Over-Invest!

That's right, no matter who you are and no matter how savvy you think you are, if you ever find yourself tempted to put more into an investment than you can truly afford to lose, just step away and come back when you've got a better handle on your finances.

You worked hard to get that money, and throwing it away on a risky venture is nothing short of irresponsible. And you don't want to risk being caught in a financial pinch because you over-invested and couldn't pay the bills.

9. Use Stop Losses

Ah, stop losses! The magical tool that is here to save all traders of cryptocurrency when the prices go through the floor. 

You're probably wondering, why should I use stop losses when trading? Well, if you don't want to go bankrupt when the prices tank, then stop losses might be your only hope. It's like having an insurance policy against cryptocurrency price crashes. 

A stop loss can be set to trigger at a price level which will automatically sell a portion of your holdings and thus limit your losses in the event of a sudden drop in price.

So remember, when trading cryptocurrency, make sure to use stop losses – it could save you a lot of money!

10. Practice Patience

Are you the type of person who just can't wait to jump into trades? Don't worry, we understand it! 

However, no matter how excited you get, take a step back and take some time to understand the market and plan your trades carefully. It may seem like an eternity in the moment, but it will pay off in the long term.

Before every rush trade, ask yourself "Is it worth the wait or am I just impatient?" 

"Patience is a virtue that one must continue to nurture and cultivate to reach the summit of success." – Japanese Proverb


Investing in crypto markets can be quite risky, and far from easy money! Don’t jump on the FOMO train, it most likely goes to hell.

Hopefully, with all learnings from this article, and understanding of the risks, you can make more informed decisions with your hard-earned money and potentially profit from the unique opportunities of the cryptocurrency markets.

Disclaimer: The content of this piece reflects the writer's opinion. This article is not intended to provide financial advice and is meant solely for entertainment and educational purposes. Investing in cryptocurrency involves significant risk. Capital is at risk, and returns are not guaranteed. Always conduct your own research.

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